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In Pledging Accounts Receivable, the Percentage Advanced Against the Adjusted

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In pledging accounts receivable, the percentage advanced against the adjusted collateral is determined by the borrower based on its overall evaluation on the quality of the acceptable receivables and the expected cost of the liquidation.


Definitions:

Organisational System

A structured arrangement of processes, resources, and people designed to achieve the objectives of an organization in an efficient manner.

Subsystem

A component of a larger system that performs a specific role or function within the overall operation, contributing to the system's efficiency and effectiveness.

Work Unit

A functional division or team within an organization that focuses on specific tasks or objectives, often denoted by departmental or project-based assignments.

Chain of Command

The chain of command is an organizational structure in which authority and responsibility are clearly outlined from the top management to the lowest ranks.

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